Nowadays everyone wants to save and invest money to make money from money. Here are the 5 best ways to start investing.
1. Stock Market Investment.
Stock market or share market means when you purchase some shares of any company its means you sharing ownership with that particular company. In stock market approx 5000+ companies are listed. The stock market is the most popular and beneficial place for an investor to invest. Before investing you must have some technical knowledge that how its work, price changing and how to buy and sell shares. Before starting you have to bought shares. When you buy a share, you have small ownership of that company. When the company is in profits, it pays you a portion of those profits in dividends based on how many shares you have. When the value of the company grows over time, so do the price of the shares you own, that you can sell them for a gain profit. You start after getting basic information about the stock market such as,
You have to be basic knowledge that how to select and buy shares. So nowadays there are some applications where you create & open Demat account easily to buy and sell shares. For more information watch stock market news channels to get suggestions for trading. Given applications are good to start stock marketing.
- Upstox: – Click here to download – Create Free Demat & Trading account to start your share market journey.
- Groww App, 5 paisa & Zerodha. For beginners then go for upstox app which is easy to use & open a free account.
2. Bank Fixed Deposit
Fixed Deposit is a financial instrument offered by banks and NBFC’s (non-banking financial company). FD is the most preferred way that offers you to deposit amount in your bank and choose a tenure and interest as per your requirement. Its provide more return on investment than regular saving accounts as per given maturity period. You get a fixed amount of return as per your duration.
1. Loan Against FD: You can take a loan against fixed deposits up to 80 to 90 percent of FD amount.
2. Tenure range from 7 days to 10 years. (Each bank has different T&Cs)
3. The interest rate varies from 3 to 7.50% without any risk factors.
3. Mutual Fund Invest.
What comes to our mind when someone mentions a mutual fund? How does this work actually? Let us explain. A mutual fund is a financial instrument made from Asset management company (AMC) this may pools investment form several individuals like us and institutional investors to invest in bonds, stock market, securities, money market instruments, and other assets. AMC is appointed fund managers, who finance experts, to manage the pooled investments money according to various goals. The AMC has professional people or fund managers who understand how markets and money work and give better returns and there have trustees of the mutual fund who keep monitoring the AMC’s activities to ensure that investors money and interests are protected.
Now it’s a given that stock markets have ups and downs as per companies portfolio. Mutual fund investments less risky than the stock market because in a mutual fund is a collective investment method that managed by the professional fund managers who pools the money of a large number of investors to purchase in securities, bonds, FDs, stocks, etc. Mutual funds investment managed by fund managers, where Stock market you deal with directly in the stocks of the company.
You can invest in a mutual fund in a lump sum manner or in smaller bits of amount through a systematic investment plan (SIP). This makes mutual funds accessible for any person easily in very low-risk. A person who salaried, businessmen or entrepreneurs. Select monthly plans started from Rs. 100 and select tenure for how long you want to invest. Mutual funds take time. Here you have to invest for long term for better returns.
- Groww application is a free platform for mutual funds and the stock market as well, where no transaction charges, no subscription charges, or no hidden charges. Click here to download.
4. Public Provident Fund
When you join a new job or start earning so everyone suggests you invest in PPF to save tax. But what is PPF and is it really a good investment option? I share all of the main features here. PPF is ‘Public Profit Fund’ and it’s a long term savings scheme which was launched in 1968 by the National Savings Institute under the Ministry of Finance. The main objective of this scheme was to encourage people to save and invest money. Many peoples regularly invest in this scheme to avail deductions of up to Rs. 1.5 lakh under section 80C.
- How much we get return & what is the risk factors?
The government decides the interest rate on a quarterly basis. Talking about January 2020, the interest rate was 7.9% and the interest on your investment is credited to your account on March 31st every year. Its controls by the government, it is believed as very low risk and one of the safest investment option.
- Investment limits
Invest starts from Rs 500 and maximum up to Rs 1.5 lakh every year in PPF scheme. You can’t withdraw money before the term ends, you have different types of partial withdrawal for selected reasons such as higher education of your children or medical emergencies, you can withdraw after 7th year onwards.
When compared with Bank FDs, you have to pay tax on whatever return or interest you will receive. But it doesn’t happen in PPF.
5. Real Estate
In Real estate, you deal with real and physical properties. Here you get low risk and highest returns. Real estate is the rights of land, property, buildings above the land and underground rights below the land. You can also invest as a partner, as a broker and creating a team or group.
- There are five main types of real estate investment:
- Residential real estate: Any property used for residential purposes, for tenants, duplex and townhouse.
- Commercial real estate: Any property used for business purposes, such as complexes, stores, apartments, offices and many more.
- Industrial real estate: The property used for any power plant, factories, warehouses purposes such as manufacturing, production, storage, research and development and industrial use.
- Land: Used vacant land, the agricultural land for farms, orchards and timberland.
- Special purpose: Property used by the public such as government buildings, libraries, parks schools and worship.
So in this blog, I’ve shared all basic info about investment plans that helps to start an investment, hope you like it. In the next blog, I will share this information in detail with deep analysis. Comment below to share your views about this blog.